On 28 of March 2014 Cyprus Ministry of Finance has issued a new decree with validity of 35 days, providing a serious relaxation of the restrictive measures, agreed with the EU/IMF one year ago, following the “the overall stabilization and restoration of confidence in the banking system”, as announced in the relevant official press release.
It is specifically outlined that the Decree on International Banks remains unchanged.
The new relaxation measures are following:

• Abolition of the cash withdrawal limits for both natural and legal persons;
• Increase of the current monthly limits pertaining to money transfers within the Republic: for natural persons – from € 20.000 to € 50.000; for legal persons – from € 100.000 to € 200.000;
• It is allowed to open a new account for any person not being an existing customer of a credit institution, provided that the new account will be a fixed term deposit created with cash funds and the overall amount to be deposited exceeds €5.000. But such new fixed term deposit cannot be terminated prior to its maturity.
• The prohibition to terminate a fixed term deposit prior to its maturity date is cancelled.

In general, the Ministry of Finance has declared “the achievement of the milestones set out in the roadmap” which confirms that Cyprus banking sector effectively advances the process of reinforcement.

In accordance with the Article 5A of the Assessment and Collection of Taxes Law no.4/78, as amended, a company is obliged to tax registration immediately after its incorporation or registration under any law in force in the Republic of Cyprus.
The subparagraph (2) of the Article of the same Law, provides that company which is incorporated in the Republic, but is not tax resident in the Republic, must provide to the Director of the IRD a filled form approved by the latter with the income statement of the current tax year until the 31st of December of that year.
For purposes of implementing the above-mentioned provision, a company which falls within the scope of Article 5 (2), shall submit the Company Income Declaration (Form E. IR4), only by completing the following required fields of the Declaration:

1. Part 1 Table 1.1 – Tax Identification Certificate (TIC)
2. Part 1 Table 1.2 – Company name
3. Part 1 Tale 1.7 – Line 3 – Leave empty
4. Part 1 Table 1.6 – Line 1 – “NO”
5. Part 1 Table 1.7 – Line 5 – “YES”
6. Part 2 Table 2.1 – Line E.I Issued Share Capital (current and previous fiscal year (even with zero))
7. Part 2 Table 2.2 – Lines 34, 36 and 39 (current and previous fiscal year (even with zero))
8. Part 5 Table 5.1.3 – Complete at least one field summed 100% (current and previous fiscal year)
9. Part 7 DECLARATION: Name and Surname, TIC number and Name of the Company. The field TIC can be completed either with the ID number, passport number or other identification number of up to (9) alphanumeric characters. If the identification number is more than 9 characters, then fill only the last 9 numbers.

The Company Income Declaration is submitted electronically with the aforementioned way, from the fiscal year 2011 and beyond.

Circular from the Inland Revenue Department on 20 of March 2014.

A proposal of the Interior Minister, Mr. Socrates Hasikos, concerning the relaxation of certain criteria for foreign investors in order to obtain Cypriot citizenship, was approved and announced on 19.3.2014 by the Council of Ministers, in an attempt to further promote foreign investment in Cyprus, namely in assets held by Cyprus companies and organizations, government bonds, real estate and development projects, setting up businesses in Cyprus.

1.  The person concerned will be required to put up an investment at the reduced amount of €2.5 million, provided           that such person is being part of a collective investment scheme worth at least €12.5 million (5 investors of €2.5 million)
2.  The person concerned will be required to put up an investment at the reduced amount of €2.0 million, in return for     such person to be part of a collective investment scheme worth in excess of €12.5 million. This provision (2) will be       applicable only until 01.06.2014.

Despite the aforesaid, if an investor wishes to present a separate application for acquisition of Cyprus citizenship, then the amount to be invested is €5 million plus €500,000 + VAT for the purchase of a permanent residence in the Republic of Cyprus.

Another basic requirement provides for the applicants to have clean criminal record.

Required Documents:

For the examination of the applications by the Civil Registry and Migration Department, it is requested to submit the Application Form (M127) and present the following supporting documentation:

1.  Certificate of Clean Criminal Record (from the country of applicant’s origin)
2.  Documents on Purchase of immovable property in the Republic: 

• Contract of Sale
• Title Deed or Proof of submission of the Contract of Sale in the Department of Lands and Surveys
• Proof of payment of the agreed purchase price as per the Contract of Sale
• Proof of deposit in Cypriot bank in the name of the Seller, for the amount stated in the Contract of Sale

3.  Company Documents:

• Certificate of Registration of the Company
• Certificate of the Shareholders or Certificates proving that the investor is the ultimate beneficiary of the company
• In case the applicant is an executive member it is required to provide his Contract of Employment and proceeds with its Certification from the Inland Revenue Department
• Financial Statements of the Company of the last three years

4.  Documents regarding deposits in Cypriot Bank:

• Confirmation by a Cypriot Bank for five (5) years fixed term deposits made by the applicant or the Company or the trusts in which the applicant is the final beneficial owner
• Transfer of the deposit amount in a Cypriot commercial bank.

5.  Any other document requested by the Ministry of Interior or the Ministry of Finance (depending on the case).

We would like to outline, that all public documents issued abroad must bear an official translation into Greek or English from Press and Information Office (PIO) and be certified with Apostille by the Ministry of Foreign Affairs of the country of origin of the applicant and then by the Embassy of Cyprus in the relevant country or by the Ministry of Foreign Affairs of Cyprus.

The time frame for the examination of an application usually takes not more than six (6) months.

Nasos A. Kyriakides & Partners LLC professional legal team, with its vast experience and in-depth knowledge of the relevant legislation in the field of Immigration and Citizenship, can assist its clients with confidentiality starting from the drafting of documentation required for submitting an application to the Civil Registry and Migration Department. We will be continuously monitoring the status of the application and keeping the applicant updated on the progress of the examination procedure. Once citizenship is granted, we will assist with obtaining the Cyprus Passport and Identity Card.

The Council of Ministers on 25 May 2013 approved a decision in order to make it easier for Investors to obtain Cypriot Citizenship and benefit from it.

A non-Cypriot may by exception apply for acquisition of Cypriot Citizenship if he/she meets one of the following criteria:

1.  Deposits and Donation to a State Fund

The applicant has made:

•  Mixed investments of at least €2,0 million for the purchase of shares and/or bonds of the Investment Company of the     State (deposited with the Treasury of the State until the shares/bonds are issued)
•  Donations of at least €0.5 million to the Research and Technology Fund.

Documentation required:

•  Receipts from the Treasury of Cyprus for the acquisition of shares and/or bonds from the state’s investment company     under formation.
•  Receipts for the investor’s donation to the Research and Technology Fund.

2.  Direct Investments

The applicant has direct investments in Cyprus of at least €5 million by any of the following ways:

•  Real estate, including residential, commercial, office space and accommodation developments or projects of similar      nature.
•  Purchase of Companies or businesses that maintain establishments and are operative in the Republic.
•  Purchase of shares in public companies in Cyprus.
•  Purchase of assets of financial nature, such as securities, bonds and debentures registered and issued in Cyprus,          including those to be issued by the National Solidarity Fund Law of 2013.
•  Participation of an investor in a company or joint venture undertaking the construction of a public project.

Documentation Required:

For Purchase of real estate:

•  Contract of Sale
•  Title deeds
•  Confirmation for submitting the contract to the Lands and Surveys Department
•  Receipts for paying the arranged price

For Purchase of a company or business:

•  Contract of Sale
•  Receipts for paying the arranged purchase price
•  Confirmation from the Registrar of Companies with regard to the shareholders.

For Purchase of shares:
•  Shares certificates
For Purchase of assets of financial nature:
•  Titles and other relevant documentation
3.  Deposits in Cyprus Banks

The applicant, or his privately owned companies or trusts must have personal fixed term deposits in Cypriot Banks for three years amounting to at least €5,0 million.

Documentation Required:

•  Confirmation of banking institutions with regard to the fixed terms deposits for three years of the investor or                 companies in which he is the beneficiary owner or of the trust in which he is the ultimate beneficiary.
•  As to the deposits of companies, the certificate of registration of the company by the Registrar of Companies and         any other relevant documentation need to be submitted.

4.  Combination of Mixed Investments and Donation to State Fund.

The applicant has made a combination of mixed Investments and a Donation to a State Fund, Direct Investments and Deposits in Cypriot Banks amounting to at least €5,0 million.

Documentation required:

Particular documentation includes the submission of the necessary documentation relevant to each condition.

5.  Business Activities

The applicant carries out business activities in Cyprus either as a shareholder, or beneficiary owner of a company or companies the management of which is in the Republic of Cyprus for over three years and has paid both to State Funds (corporate tax, V.A.T) and remuneration for the provided services (legal, accounting, auditing) of at least €500.000 per annum, reduced in €350.000 if it employs at least five (5) Cypriot citizens, or reduced to €200,000 if it employs more than ten (10) Cypriot citizens

Documentation Required:
•  Certificate of registration of the company by the Registrar of Companies.
•  Certificate of shareholders by the Registrar of Companies or certificates providing evidence that the applicant is the     beneficiary owner of the company.
•  Confirmation with regard to the amounts paid as to the remuneration for business services. The confirmation has to       be issued by the service providers.
•  Audited accounts of the company for the last three years prior to the year of application.
•  Confirmation from the Social Insurance Department as to the insurable income of the employees in the company of         the investor.

6.  Investors with impaired deposits after measures implemented against both banks after 15 March 2013.

The applicant’s deposits with the Bank of Cyprus or Popular Bank have been impaired due to the measures implemented in Both Banks after the 15th March 2013, amounting to a total of at least €3,0 million.
Documentation Required:

•  Confirmation with regard to the extent and date of the impairment of deposits.
• When it comes to deposits in companies in which the investor is the beneficiary owner, the certificate of registration    of the company by the Registrar of Companies and any other relevant evidence need to be submitted

Terms and Conditions:

•  The applicant must have a Clean Criminal Record and his name must not be included on the list of persons whose           property is ordered to be frozen within the boundaries of the European Union.
•  The applicant must hold a permanent privately-owned residence in the Republic of Cyprus with a market value of           €500,000 plus VAT (contract of sale and confirmation of settlement of the dwelling must be provided).
•  The naturalization may be revoked in the case where following a periodic inspection it has been ascertained that any     condition is being circumvented.